Wages in Argentina Suffer Record Drop

[MilHojas]

Wages in Argentina Suffer Record Drop After Milei Devalues Peso

(Bloomberg) -- Private-sector wages in Argentina fell the most in nearly three decades after President Javier Milei’s currency devaluation, according to a new government report. Most Read from BloombergTrump’s Net Worth Hits $6.5 Billion, Making Him One of World’s 500 Richest PeopleTrump Vows to...

finance.yahoo.com

 

[antipodean]

Wages in Argentina Suffer Record Drop After Milei Devalues Peso

(Bloomberg) -- Private-sector wages in Argentina fell the most in nearly three decades after President Javier Milei’s currency devaluation, according to a new government report. Most Read from BloombergTrump’s Net Worth Hits $6.5 Billion, Making Him One of World’s 500 Richest PeopleTrump Vows to...

finance.yahoo.com

As someone paying a great deal of wages, I’d call the title utter bullshit and click bait.

Average wage (since February…) in my sector now over US$1000 with even more paritarias planned, up from hovering around US$300 in November/ December.

 

[MilHojas]

Average wage (since February…) in my sector now over US$1000 ...

Could you please specify which sector you're referring to?

 

[antipodean]

Could you please specify which sector you're referring to?

Transport. And am talking non-professional (and unionized) frontline worker wages en-blanco... it is nothing exceptional.
Professional office workers in many Pymes, large companies and even some non-profits that I am familiar with are already well over ARS 2.000.000 (US$1970+) for junior management level roles with executive level salaries ranging between ARS 3.000.000-ARS 5.000.000 (US$2955-US$4926)

If you follow local business news you will quickly see how basic wages in various sectors are. Here is an example:
Various health care worker unions starting basic salaries (before extra for seniority etc) for non-managerial workers:
- Category A University Graduate ARS 1.333.650 (US$1313)
- Factory workers (in chemical plants) ARS 1.087.478 (US$1071)
- Unskilled workers (general positions) ARS 732.546 (US$721)
- Administrative staff ARS 993.222 (US$978)

Another example, private security guards:
- From ARS 635.000 (US$604) to ARS 920.000 (US$906)

Here is another example:
Travel & tourism - traditionally one of the lowest paying sectors.
- Starting salary ARS 652.000 (US$642)

And here are the wages of the lowest paying sector, domestic workers:
- Between ARS 266.000 (US$262) and ARS 327.660 (US$322)
They are today earning in dollar terms what most workers in other more "highly skilled" sectors were earning in dollar terms in November last year.

Perhaps someone would like to compare these salaries to say Spain, Portugal, Italy, Eastern Europe or anywhere else in Latin America for that matter to gauge how exceptionally terrible wages in Argentina today really are. What is exceptional is that few of these wage earners in Argentina currently need to pay income tax on these wages, unlike their European counterparts.

But hey, I guess it is easier for some expats removed from the everyday local economy/ workforce to pay attention to headlines capturing one specific moment in time to perpetuate myths about how terrible this new government is for Argentine workers than to look for real examples or try to understand that any economic adjustment doesn't look like synchronised swimming in the real world and needs a little time for everyone to catch up.

 

[carride]

As someone paying a great deal of wages, I’d call the title utter bullshit and click bait.

Average wage (since February…) in my sector now over US$1000 with even more paritarias planned, up from hovering around US$300 in November/ December.

reading the article gives more details

according to a new government report.
Paychecks plunged 11% in December from November when adjusted for inflation, the largest monthly loss in income since the government’s labor market reports began 29 years ago. The decline, while partially compensated by wage gains in January, led to a “significant drop” in consumer purchasing power, the government said.

 

[antipodean]

reading the article gives more details

according to a new government report.
Paychecks plunged 11% in December from November when adjusted for inflation, the largest monthly loss in income since the government’s labor market reports began 29 years ago. The decline, while partially compensated by wage gains in January, led to a “significant drop” in consumer purchasing power, the government said.

It may be a statistical factoid, but how is it still relevant in March/ April to warrant a headline? Or if one government worker's union plans to strike while the vast majority of other unions heave reached/ are reaching agreements for wage increases a sign of doom and gloom?

The article gives no detail to the current or projected state of wages in Argentina, extreme differences and rapid changes between the public and private sectors, nor mention of why the drop when linked with the devaluation was so big at that moment (hint: a record high brecha cambiaría distorting things thanks to Alberto/ Massa at the time where despite minuscule wages and rock bottom prices, costs of living were similarly unaffordable for many wage earners as today as the canasta básica back then cost more than the average income)

Point is that neither the drop in consumer spending nor the looming recession are primarily a wage issue. A major factor, price inflation/ instability, as always in Argentina, is doing its own thing and putting a squeeze on things as everyone is trying to catch up with everyone else, subsidies are still coming off and businesses try to make up for past losses and hedge their bets against an uncertain near term future in what is to everyone a new and unfamiliar playing field. Amongst various other significant factors the lack of consumer financing in this new context has a major impact on consumer spending habits amongst Argentines (the difficulties many are facing extending their card limits and suddenly realizing that financing in cuotas is no longer as cheap or certain as before when a huge chunk or spending was buy now pay later).

 

[carride]

It may be a statistical factoid, but how is it still relevant in March/ April to warrant a headline?

I guess Bloomberg decided to report this article because the current Argentina government recently published the report. Bloomberg summarized the report for their readers who live in other parts of the world. It is only a few paragraphs of a news report.

 

[Quilombo]

You can't make this up:

Milei confirmed that the issuance of pesos will be stopped and suggested people take their dollars out of the mattress

What dollars? He seriously thinks the average pleb is sitting on tens of thousands of cash like him and his friends in the caste?

 

[sts7049]

i have never met an argentine who doesn't have cash USD stuffed away hidden as savings.

 

[Quilombo]

i have never met an argentine who doesn't have cash USD stuffed away hidden as savings.

I think we travel in different circles. Most people I know have max a couple hundred dollars saved, or nothing at all. Pretty sure that wont last a months/years long brutal "adjustment" the caste was supposed to pay for.